Commercial LPG price cut by ₹83.5, ATF by 7 pc; domestic gas cylinder cost unchanged
The price of commercial LPG, which is used by business establishments like hotels and restaurants, on Thursday (June 1) was slashed by ₹83.5 per 19-kg cylinder. This is the third straight monthly reduction, while rates of jet fuel (ATF) were cut by 7 per cent due to softening international oil prices.
A 19-kg commercial LPG now costs ₹1,773 in Delhi, down from ₹1,856.5, according to price notification from state-owned fuel retailers. This is the third straight monthly reduction in commercial LPG prices.
Rates were cut by ₹91.5 per 19-kg cylinder on April 1, and by a steep ₹171.5 on May 1.
The three reductions have almost wiped out the ₹350.5 per cylinder hike in prices effected from March 1. The price of domestic LPG – the one households use in the kitchen for cooking purposes – however remained unchanged at ₹1,103 per 14.2-kg cylinder in the national capital.
Domestic LPG rates were last changed on March 1, when they were hiked by ₹50 per cylinder.
Also read: Commercial LPG price cut by Rs 171.5/kg
State-owned Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL) revised cooking gas prices on the 1st of every month based on the average international price in the previous month.
Separately, ATF price was cut by a steep 7 per cent in line with international trends.
Accordingly, jet fuel rates were reduced by ₹6,632.25 per kilolitre to ₹89,303.09 per kl in Delhi. This is the fourth straight monthly reduction in rates. Prices were cut by 4 per cent (₹4,606.50 per kl) on March 1, by 8.7 per cent (₹9,400.68 per kl) on April 1 and by 2.45 per cent (₹2,414.25 per kl) on May 1.
ATF price is revised on the 1st of every month based on the average rate of international benchmark and foreign exchange rates. International oil prices have erased all gains made since OPEC+ producers announced a surprise production cut earlier in April.
Oil prices fallen, petrol prices stagnant
Oil prices have fallen to below US$ 73 per barrel from above US$ 87 per barrel in days following the OPEC+ decision to cut output on concerns over a weak demand outlook and on fears of debt default in the world’s biggest oil consumer, the US.
Oil prices peaked at US$ 139 a barrel in March 2022, in the aftermath of Russia-Ukraine war.
Petrol and diesel prices, however, continued to remain on freeze for a record 14th month in a row. Petrol costs ₹96.72 per litre in the national capital and diesel comes for ₹89.62.
State-owned fuel retailers are supposed to revise petrol and diesel prices daily based on a 15-day rolling average of benchmark international fuel prices but they haven’t done that since April 6, 2022.
Prices were last changed on May 22, when the government cut excise duty to give relief to consumers from a spike in retail rates that followed a surge in international oil prices.